Cryptocurrency aren’t just secure and stylish digital currency versions but also represent new financial revolutions. But, Bitcoin is the only one mentioned frequently in cryptocurrency discussions.
However, there is an array of cryptocurrencies in the form of tokens and coins. Thus, the fascination for the various forms of cryptocurrency has gained significant growth in recent years.
Many don’t want to accept the different altcoins created in conjunction with the base of Bitcoin. Instead of focusing on the altcoins alone, you should search for different cryptocurrency solutions available in different categories, like stabilized coins, decentralized finance, and various variations.
The next article will give you an overview of the various kinds of cryptocurrency, along with the most popular examples for each category.
Types of Cryptocurrencies
1: Decentralized Finance
Decentralized finance, also known as DeFi, is among the various platforms used for finding the answers to “How many types of cryptocurrency are there?” particularly in light of the need for cryptocurrency included in DeFi.
The basic goal of decentralized finance is the elimination of intermediaries, such as banks and financial intermediaries. Imagine, for instance, having access to financial services like purchasing loans and investments without calling the bank or any other financial institution.
They have the potential to be used for automatization as well as the digitalization of many elements of our financial system.
Like the various accounts and tools used in the traditional financial system, cryptocurrencies could play a significant role in the new DeFi ecosystem.
For instance, individuals can take a crypto loan to fund their cryptocurrency portfolios and earn interest from their crypto holdings.
The implications of crypto types for the DeFi ecosystem provide some clear benefits. It is possible to ensure quick and secure transactions through an open market built following the principles of openness.
2: Digital Gold
Digital Gold is an exciting idea discussed in cryptocurrency discussions, similar to gold in storage and growing value. Similar to the scarce gold supply on earth, digital gold cryptocurrencies will also have a restricted quantity. The most famous example of these kinds of crypto is Bitcoin.
3: Digital Cash
The variant of Bitcoin has been gaining prominence due to the inherent volatility of Bitcoin to function as an actual cryptocurrency.
The fundamental idea behind Bitcoin Cash emerges from the possibility of the volatility of cryptocurrency valuation. Bitcoin Cash is one of the most well-known entries on the top list of cryptocurrency that offers specific services for digital payments.
4: Decentralized Applications
The popularity of crypto-types draws some apparent reference to decentralized apps. Ethereum is among the most notable examples of a blockchain network with an indigenous cryptocurrency.
It was a programming platform for developers and set the basis for a new decentralized application. Thus, it is easy to observe the various ways that alternative cryptocurrency options can be used for other uses that go beyond the boundaries of finance.
For instance, the Ethereum-based NFTs have been regarded as credible features among decentralized applications and their applications. Some other examples of similar cryptocurrency comprise the Polkadot along with Cardano.
4: Stablecoins and Strange Cryptocurrencies
The most prominent answer among the answers to “How many types of cryptocurrency are there?” could be stabilized coins. They were designed as the most suitable solution to price volatility that cryptocurrencies experience.
Stablecoins typically are tied to an actual currency or reserve to guarantee a stable price. USDT and USD Coin are two popular instances of stablecoins.
However, you may also come upon some cryptic cryptocurrencies that are not your typical. For instance, Putincoin or Whoppercoin are creative versions of the cryptocurrency.
List of Popular Types of Cryptocurrency?
1. Bitcoin (BTC)
- Price: $21,558
- Market Cap: $413 billion
As the symbol of the cryptocurrency era, Bitcoin is the currency people usually think of when discussing digital currencies.
The mysterious creator of the coin is believed to be Satoshi Nakamoto first introduced the cryptocurrency in 2009, and it’s been on a journey since. It was not until 2017 that it exploded into the public consciousness.
2. Ethereum (ETH)
- Price: $1,697
- Market Cap: $208 billion
Ethereum (also known as Ethereum), the title for the cryptocurrency platform, is the name you’re most likely to see in cryptocurrency.
It allows you to utilize the ether (the money) to carry out various tasks. However, the smart contract component of Ethereum can make it a well-known currency.
3. Tether (USDT)
- Price: $1.00
- Market Cap: $67 billion
The price of Tether is set at $1 for each coin. It’s because it’s known as a stabilized coin. Stablecoins are linked in value to an asset; in this case, it’s, in this case, the U.S. Dollar.
The Tether can be used as a channel for traders to shift from one cryptocurrency to another. Instead of converting back into dollars, they make use of Tether.
But, some are concerned that Tether isn’t supported by dollars that are in reserve but rather an unsecured form of short-term debt.
4. USD Coin (USDC)
- Price: $1.00
- Cap of the market: $52 billion
As Tether, USD Coin is an unchanging stablecoin tied to the dollar, meaning its value shouldn’t fluctuate.
The currency’s creators claim that it’s secured by reserve assets or ones with an “equivalent fair value,” These assets are kept in accounts that U.S. institutions control.
5. Binance Coin (BNB)
- Price: $300.50
- Cap of the market: $49 billion
The Binance Coin is the crypto offered through Binance, one of the largest cryptocurrency exchanges in the world.
Although it was initially created to pay for discounted trades, Binance Coin can now be used to pay for transactions and buy various products and services.
6. Binance USD (BUSD)
- Price: $1.00
- Market Cap: $19 billion
The Binance USD cryptocurrency is a USD-backed stablecoin created by the top cryptocurrency exchange Binance in collaboration with Paxos.
Binance USD was introduced in 2019 and is now regulated under the New York Department of Financial Services. BUSD is built on Ethereum. Ethereum blockchain.
7. XRP (XRP)
- Price: $0.3456
- Cap of the market: $17 billion
The company was previously called Ripple and launched in 2012 XRP provides a means to pay using a variety of currencies in the real world.
Ripple is an excellent option for cross-border transactions and uses an untrustworthy mechanism to facilitate transactions.
8. Cardano (ADA)
- Price: $0.4621
- Cap of the market: $16 billion
Cardano is the cryptocurrency platform that powers Ada, the name used to describe the currency. The co-founders of Ethereum developed the platform; Cardano also uses smart contracts to manage identities.
9. Solana (SOL)
- Price: $35.63
- Market Cap: $12 billion
It was launched in March 2020. Solana was launched on March 20, 2020. Solana is an upcoming cryptocurrency that claims its speed of processing transactions and the overall reliability of its “web-scale” platform. The issue of the currency known as SOL is limited to around 480 million dollars.
10. Dogecoin (DOGE)
- Price: $0.06829
- Market Cap: $9 billion
It was created as a joke following the crash of Bitcoin; Dogecoin is named after an internet meme that features an adorable Shiba Inu pet.
In contrast to other digital currencies that limit the number of available coins, Dogecoin is a currency with unlimited capacity for issuance. It can be used to make transactions or to transfer money.
It is one of the Wild West (although it appears that it is likely that the U.S. government is likely to play a more active role in regulating the cryptocurrency market).
Therefore, anyone speculating on these digital investments should be careful not to invest more than they can afford to lose. There has been a lot of volatility as crypto assets fluctuate substantially in 2022.
Markets have been falling since they hit all-time highs in November 2021. Investors of all levels are trading against highly skilled players, which can be a stressful experience for those who are new to the market.